FIN 513: Insurance Coverage While in Travel Status
To describe the university insurance policies governing travelers
State of Arizona Travel Policy
State of Arizona Department of Administration, Risk Management Section
Employees authorized to travel on official university business are covered by the State of Arizona Department of Administration, Risk Management Section, insurance program for liability and workers’ compensation coverage while in the course and scope of their employment. University-owned and leased property is covered by property insurance and coverage is provided worldwide.
University-owned vehicles are covered with liability and property damage insurance when being driven on official university business and when the driver has attended defensive driver training, which is valid for three years. (See EHS 119, “Motor Fleet Safety,” for additional information.) Certain limitations related to medical coverage for passengers not employed by the university and other restrictions exist and are explained in the Fleet Service pamphlet Use of State Vehicles.
Privately Owned Vehicles
Employees authorized to operate privately owned vehicles while on official university business must have a valid driver’s license for the type of vehicle being operated and at least the minimum vehicle insurance coverage required by the state of Arizona. The state’s vehicle liability insurance provides coverage to employees to supplement their personal insurance while using privately owned vehicles on authorized university business. However, the traveler’s personal insurance policy is considered to be the primary insurer and must respond to the limit of the policy in an accident involving the privately owned vehicle. The state’s insurance policy provides coverage for the employee’s liability in excess of the employee’s provided policy limits. Regardless of who is at fault, the state will not reimburse the traveler for any comprehensive or collision damage to a privately owned vehicle.
State insurance coverage does not apply to any vehicle when used outside the scope and course of employment, such as during vacation taken in conjunction with authorized university travel.
The use of rental/leased vehicles may be authorized only when it is to the advantage of the university and not for the personal convenience of the traveler. Authorization to rent/lease a vehicle when in travel status must be specifically noted and approved on a Travel Authorization form.
The State of Arizona Department of Administration, Risk Management Section, provides liability and property damage coverage for rental/leased vehicles used for official university business when the driver has attended defensive driver training within the past four years. Therefore, the insurance options offered by the rental/leasing agency are not reimbursable for travel within the United States. When the use of a rental/leased vehicle is required, the traveler must refuse the collision and liability insurance unless in foreign travel status. The traveler should indicate the rental is for university business by adding “On behalf of Arizona State University” behind the traveler’s name on the credit card agreement.
Foreign Travel Vehicle Insurance
University-owned and leased vehicles used for international travel are covered for automobile liability and property damage with worldwide coverage. However, due to some variations in local laws, the purchase of local insurance might be necessary. Leased vehicles will usually be covered by owner provided insurance coverage. The traveler must confirm local requirements and purchase appropriate coverages as the local laws require as necessary, and to ensure adequate coverage.
Mexican authorities do not recognize insurance policies from the United States. The State of Arizona Department of Administration, Risk Management Section, maintains a Mexican automobile, aircraft, and general liability insurance policy which covers university employees traveling in Mexico on official university business. Only university-owned vehicles are covered for automobile liability, and proof of insurance must be maintained in the vehicle at all times. Proof of insurance can be obtained prior to any trip into Mexico from ASU Fleet Service at 480/965–3496.
Domestic Travel Accidents
Report all property loss claims as soon as possible to ASU Insurance Services at 480/965–1823 (480/965–3456 for after-hour emergencies). Instructions on filing a claim will be given at that point and are described in the Purchasing and Business Services Management Policies and Procedures Manual—EHS 705–02, “Vehicle Loss Insurance Recovery.”
In the event of a work-related illness or injury seek appropriate medical attention. Contact ASU Human Resources Benefits Office at 480/727–6337 (480/965–3456 for after-hour emergencies) within 48 hours of the illness or injury to file a workers’ compensation claim.
Foreign Travel Accidents
Report all automobile accidents in accordance with local requirements and special provisions contained in separately purchased automobile liability policies. In addition, contact ASU Insurance Services as soon as possible at 480/965–1823 (480/965–3456 for after-hour emergencies) to report the accident.
Travel Assistance Services
A new program is available to all state agencies including ASU. This program, Travel Assistance Services, provides specific services and benefits to all full-time university employees traveling on official university business 100 miles or more from their home. The program provides predeparture assistance, travel medical emergency assistance, medical evacuation and repatriation assistance, insurance assistance, and personal assistance. In addition, travel assistance can be offered to an employee’s traveling companion or minor children.
A brochure further explaining these benefits can be viewed on the Financial Services Travel Page.
For related information, see the Purchasing and Business Services Policies and Procedures Manual:
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